Cryptofiat Currencies are a New Kind of Inflation Tax on Savings
Expanding the money supply with cryptocurrencies that have no intrinsic value, a class of cryptocurrencies known as “Cryptofiats” is the same as printing money by the governments, with only a different group collecting the inflation tax. They are just inflating the general money supply.
The Cryptofiats are failing to take advantage of the great opportunity to restore legitimacy to monetary policy offered by digital currencies, instead are continuing in the same vein as the government money-printers.
So how is Worldfree’s approach with the FreeMark digital currency any different?
We are restoring legitimacy to mediums of exchange, and simultaneously “connecting” them to the physical world to provide stability by commodity pegging.
Worldfree’s FreeMark is one of a new class of digital currencies called “Responsiblecoins”, because they restore fiscal responsibility to global monetary society.
The FreeMark is inflation and deflation resistant, a huge value for people in developing countries who want to enjoy the same kind of monetary stability successful developed countries like Switzerland have, without leaving their home nations.
The FreeMark is literally a better medium of exchange, engineered to be stable, asset-backed, yet still provide a rate of return comparable to other cryptocurrencies, because the FreeMark pays a patent-pending Growth Rate Royalty, which reverses the negative effects of inflation by giving owners more of them.
In the early days of the FreeMark returns can be outstanding as the growth rate is higher, while in the long run the FreeMark is more like a cryptobond, with expected steady, sustainable returns. The FreeMark replaces existing fiat currency with asset-backed sound money, as a first-mover Responsiblecoin.